COOKS BROOK, NOVA SCOTIA -- (Marketwired) -- 08/25/15 -- Selwyn Resources Ltd. (TSX VENTURE: SWN) ("Selwyn" or the "Company") announces that it has appointed Mr. Louis Montpellier to the Company's Board of Directors and granted him stock options. The Company is also announcing the resignations of Mr. Ben Cubitt and Mr. Justin Oliver as directors of the Company to enable them to increase their focus on their other businesses.
"I am pleased to welcome Louis to the Board of Directors," commented Victor Lazarovici, Selwyn's Chairman. "He brings more than 30 years of broad experience in the mineral exploration and mine development business, both as a lawyer and as a director or officer of several Canadian public companies. On behalf of the Company, I thank Ben and Justin for their valued contributions to the Company over the past two years, a period that saw the Company undergo significant changes, and wish them well in their future endeavours."
Mr. Montpellier is a lawyer by training and worked primarily in the capital markets as counsel to emerging issuers and listed public companies engaged in mineral exploration and mining. Mr. Montpellier has assisted a wide range of businesses in the entire spectrum of corporate finance activities, from accessing seed capital for private companies through to IPOs and subsequent public and private financings and has worked extensively in the field of mergers and acquisitions, hostile and friendly take-over bids, proxy contests, corporate reorganizations, and arrangements. Mr. Montpellier also has experience in debt and project financing for mineral projects, acting both for lenders and borrowers. On the corporate side, he was Vice-President, Corporate Development and General Counsel for Extorre Gold Mines Limited from its creation in 2010 until its acquisition by Yamana Gold Inc. in 2012 for $414 million.
The Company has granted Mr. Montpellier incentive stock options ("Options") under its Stock Option Plan to acquire up to an aggregate of 33,000 common shares ("Common Shares"). All Options are exercisable for a period of five years at a price of $1.35 per Common Share. 25% of the Options will vest immediately and the remainder will vest in 25% increments every six months thereafter.
Upon the granting of the Options described above, Selwyn will have 231,000 options outstanding under the Stock Option Plan with an average exercise price of $1.92 per option, representing 5.9% of the 3,941,046 Common Shares currently outstanding. The Stock Option Plan currently limits the issuance of Options to no more than 10% of the current issued and outstanding Common Shares.
In response to the ongoing challenges facing the mineral exploration and mining industry, Selwyn continues to take measures to prudently manage its operating costs. These measures include reducing costs across the Company to preserve the value of the Company's assets. As part of these measures, the Company has reduced the annual fee paid to members of the Board of Directors by 50%.
The Company also continues to pursue opportunities to maximize the value of its ScoZinc Mine and its related exploration projects. These opportunities include, but are not limited to, the possible sale, joint venture, or other transactions with third parties. Except as required by law, the Company does not intend to disclose developments with respect to the consideration of strategic alternatives until warranted. The Company cautions that there are no assurances that any strategic alternative will be undertaken or pursued.
Selwyn is an established Canadian-based zinc and lead exploration and development company that owns the ScoZinc Mine near Halifax, Nova Scotia, that has the necessary approvals to restart operations. Selwyn has a strong working capital position and no debt. Selwyn has 3,941,046 common shares outstanding, which are traded on the TSX Venture Exchange under the symbol "SWN".
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Selwyn Resources Ltd.
Mr. Joseph Ringwald
President and CEO
+1 (604) 347-7661